Adult children who move back home can find themselves in an insurance predicament

Adult children who move back home can find themselves in an insurance predicament

While maintaining insurance coverage is something that families keep in mind, the influx of young adults who are being forced into unemployment and moving back home to live with their parents has created some unique situations.

According to the National Association of Insurance Commissioners, so-called "Boomerangers" can often find themselves in a tight spot if not covered through their profession, as many states have laws that have an age limit on how old a dependent can be to receive coverage through a family member.

"In this economic environment, many young adults and their parents are finding themselves in a position they never expected," said Jane L. Cline, the NAIC's president and the commissioner of West Virginia Insurance. "A grown child moving back home can create insurance implications that must be considered carefully and understood to ensure everyone stays protected."

Young adults who don't have health insurance and cannot join one of their parents' plans have a few alternatives. The NAIC recommended checking with alumni associations and state insurance pools to see if there are affordable plans that may be available.

According to a survey taken last November by Pew Research Center, 13 percent of parents with grown-up children said at least one of them had been forced back home to save some money. Furthermore, 10 percent of the newly-domesticated adults between the ages of 18-34 said the poor economy was why they had moved home.